Bankruptcy is just one option for resolving financial obligations. It may well be the answer in some situations but experienced attorneys advise their clients to consider all the alternatives before beginning bankruptcy proceedings.
If you look at the interest rates associated with debt along with the monthly payments that must be met, it may serve the debtor well to take advantage of debt consolidation. It puts the debt into one lump sum so that the debtor only has to deal with a single timely payment and can often lower additional charges.
If the debtor is a homeowner and has increased the value of his ownership in comparison with the home’s appraised market worth he may be eligible for a home equity loan as a means of consolidating his debt. The equity of a home is determined by the current market value minus the total amount of money that the owner has contributed in mortgage payments. This kind of loan is usually tax deductible and comes with a low interest rate.
Bankruptcy is not a word that creditors like to hear. They may well consider lowering debt payments in order to avoid involving the bankruptcy court system in the reconciliation plan. Consult with a bankruptcy attorney about the best ways to negotiate with your creditors. You will want to be aware of all the legalities involved before you enter into arbitrations.
Default on the debt is a possible alternative for debtors who see no other way out and give up trying to make payments altogether. Creditors are bound by the Fair Debt Collection Practices Act which prohibits them from making threatening or inappropriate phone calls in an effort to collect the debt. If a debtor defaults on a loan he should seek counsel in order to avoid legal actions such as repossession or foreclosure.
Discuss all bankruptcy options and alternatives with an experienced bankruptcy attorney from Parker Lawyers. Read more on the website, www.parkerlawyers.com and call the offices @ 303-841-9525 to set up a personal consultation.